Five- to eight-unit buildings are where many investors graduate from fourplexes, and where many lenders switch to commercial rules. The right lender keeps the loan simple.
In short: Our top pick for 5-8 unit rental buildings is LendingStreet. We treat five- to eight-unit buildings as residential DSCR loans, not commercial, so you qualify on the rent of every unit with no W-2s, tax returns or business financials. Loans start at $150,000 with no stated maximum, LLC borrowing is standard, 30-year terms are available and we lend in all 50 states and DC. Max LTV on 5-8 units varies by program and can be lower than on a single-family rental, so we show you options at more than one loan amount.
A five- to eight-unit building sits in an awkward spot. It is too big for many residential mortgage programs and small enough that a full commercial loan can feel like overkill. LendingStreet treats 5-8 unit buildings as residential DSCR loans, so you qualify on the building's rent with the same investor-friendly approach we use on a single-family rental.
Loans start at $150,000 with no stated maximum. You qualify on rent, with no W-2s or tax returns, a 620 minimum credit score, LLC borrowing as standard and 30-year terms available. Max LTV on 5-8 units varies by program, and our standard minimum DSCR is 1.0x, with sub-1.0 programs on some files.
It fits investors buying, refinancing or pulling cash out of a non-owner-occupied five-, six-, seven- or eight-unit building in any state. Get a quote with the form below, or call (877) 298-1001.
Well-known 5-8 unit rental lenders include CoreVest, Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital. Compared scenario by scenario, LendingStreet comes out as the stronger choice, and one application covers it.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| 5-8 unit building | LendingStreet | We treat 1-8 units as residential DSCR. Lima One and CoreVest state 1-4 unit eligibility for their rental loans. |
| Rental loan above $2M | LendingStreet | Our DSCR loans have no stated maximum. LendingOne states DSCR loans up to $2,000,000 and RCN Capital states long-term rental loans up to $1.5M. |
| Credit score in the 620s | LendingStreet | Our DSCR minimum is 620. RCN Capital and New Silver state 660 minimums, and Dominion Financial states 680, with exceptions to 660. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
Most residential mortgage programs stop at four units. Once a building has five, many banks move it to their commercial desk, where the loan is often underwritten on the borrower's financial statements and tax returns as well as the property, and terms are frequently shorter, with a balloon or reset.
That can work for some borrowers, but it adds paperwork and refinance risk to a building that behaves a lot like a large fourplex. Our approach keeps 5-8 unit buildings in the residential DSCR program. Buildings with 9 or more units are commercial; see our commercial page.
Here is how the main lender types usually line up on a 5-8 unit rental. Each has its place; the table shows the general picture.
Commercial banks can be a good fit for borrowers with a strong local relationship and clean financials. Hard money works for short repositioning projects. For a long hold that qualifies on the building's rent, a residential DSCR loan built for 5-8 units is usually the simpler path.
| What 5-8 unit investors need | LendingStreet | Typical commercial bank | Typical hard money lender |
|---|---|---|---|
| How the loan is treated | Residential DSCR | Often commercial | Short-term project loan |
| Qualify on rent | Yes, rent of all units | Often also requires tax returns and financials | Based mostly on the deal |
| Long-term hold | 30-year terms available | Varies; shorter terms or balloons are common | Usually short-term only |
| Borrow in an LLC | Standard | Common | Common |
| Leverage | Varies by program | Varies by bank | Varies; fees and terms vary |
| Loan size | From $150,000, no stated maximum | Set by the bank's appetite | Varies |
| Where they lend | All 50 states and DC | Usually local or regional | Usually local |
Small apartment buildings show up in almost every older American city. Chicago has brick six-flats, Boston, Worcester and the rest of New England have walk-ups and converted houses, and Philadelphia and Baltimore have rowhome conversions and corner buildings with several units.
In the Midwest, cities like Cleveland, Cincinnati, Milwaukee and St. Louis have brick walk-ups built before World War II. In the Sun Belt, small garden-style buildings from the 1960s to 1980s are common in Texas, Florida, Arizona and Georgia, and California has older stucco buildings with five to eight units.
We add the rent from every legal unit and divide by the full monthly payment: principal and interest, taxes, insurance and any association dues. At 1.0x or better, the deal meets our standard minimum. Because 5-8 unit buildings have more units, one vacancy moves the ratio less than it would on a duplex.
Insurance and taxes are often higher on a small apartment building, and in some cities the owner pays for heat, water or common-area electric. Build those costs into your own analysis even when they are not part of the ratio. Larger balances get more review, and max LTV can be lower; it varies by program.
Say you buy a six-unit brick building in a Midwest city for $900,000 at 75% LTV, with each unit renting for $1,250 a month. Taxes are estimated at $10,800 a year and insurance at $5,400.
This example is illustrative and not a quote. Rent of $7,500 divided by a total payment of $6,012 gives a DSCR of about 1.25x, above our 1.0x standard minimum. Max LTV on 5-8 units varies by program and can be lower than on a single-family rental, so we often model these files at 75%. To see your building's numbers, get a quote with the form below or call (877) 298-1001.
| Item | Amount |
|---|---|
| Purchase price | $900,000 |
| Loan amount (75% LTV) | $675,000 |
| Down payment | $225,000 |
| Monthly rent (6 units) | $7,500 |
| Estimated principal and interest | $4,662 |
| Property taxes ($10,800 a year) | $900 |
| Insurance ($5,400 a year) | $450 |
| Total monthly payment | $6,012 |
| DSCR | 1.25x |
Ask every lender the same questions so you can compare offers on equal terms.
How LendingStreet answers: max LTV on 5-8 units varies by program, with up to 80% on purchases and 75% on cash-out on some programs; our standard minimum is 1.0x, with sub-1.0 programs; cash-out seasoning varies by program; LLC borrowing is standard; we set out a timeline once we see the file; and loans start at $150,000 with no stated maximum, though larger balances get more review. If you need speed, our bridge loans can close in as little as 10 days and refinance into a DSCR loan. Call (877) 298-1001 to walk through your building.
A complete file gets a faster, clearer answer. Send the address, price or estimated value, a rent roll and leases, the tax bill, an insurance quote and your target loan amount. Get a quote with the form below or call (877) 298-1001.
If you own five or more rental properties, a blanket portfolio loan can combine them under one loan with one payment. We lend on 5-8 unit buildings in all 50 states and DC.
Our top pick is LendingStreet. We treat 5-8 unit buildings as residential DSCR loans, qualify on the building's rent with no tax returns, allow LLC borrowers, offer 30-year terms and lend in all 50 states and DC.
Yes. We finance non-owner-occupied 5-8 unit buildings in all 50 states and DC.
At LendingStreet, 5-8 units is residential DSCR. Buildings with 9 or more units are commercial and go through our commercial program.
It varies by program. Max LTV on 5-8 units can be lower than on a single-family rental and can drop on larger balances. We will show you options at a few loan amounts.
No. A DSCR loan qualifies on the building's rent. We look at credit (620 minimum), down payment and reserves, and the property's rent and expenses.
Vacant units can usually be counted at market rent supported by the appraisal, and with more units, one vacancy moves the ratio less than on a duplex. Signed leases help.
Yes. A DSCR rate-and-term refinance can replace a bank balloon, bridge or hard money loan. Seasoning and max LTV vary by program, so reach out before the maturity date.
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